Attornment Agreement Definition: What You Need to Know

An attornment agreement is a legal document that outlines the relationship between a tenant, landlord, and a third party. This third party is typically a new property owner or landlord who acquires the title to the property where the tenant lives or does business. The purpose of an attornment agreement is to clarify the rights and obligations of all parties involved in the tenant-landlord relationship following a change in ownership of the property.

In practical terms, an attornment agreement is used to ensure that a tenant`s lease remains valid and enforceable after the sale or transfer of ownership of a property. When a property is sold, the new owner or landlord steps into the shoes of the old one and assumes all the responsibilities and obligations of the previous landlord. This includes honoring any existing leases or rental agreements with tenants.

The attornment agreement is a document that the new landlord and tenant sign to acknowledge the relationship between them. It serves as a confirmation that the tenant agrees to recognize the new landlord as the rightful owner of the property and will continue to pay rent and abide by the terms of the lease. In return, the new landlord agrees to honor the existing lease and provide the tenant with all the services and amenities promised under the lease agreement.

The attornment agreement also defines the terms of the tenant-landlord relationship moving forward. For instance, it may outline how and when rent payments will be made, what services and utilities the tenant is entitled to, and what happens if either party breaches the agreement.

Attornment agreements are common in commercial real estate transactions. They are particularly useful when a tenant occupies a property that is part of a larger portfolio, and the new owner wants to retain the tenant`s business. By signing the attornment agreement, the tenant agrees to recognize the new landlord`s ownership and continue to do business with them.

In conclusion, an attornment agreement is a legal document that protects the rights of both tenants and landlords following a change in ownership of a property. By clarifying the obligations and responsibilities of all parties involved, it helps to ensure that the tenant-landlord relationship remains stable and predictable. If you are a tenant or landlord involved in a real estate transaction, it`s important to understand how an attornment agreement works and what it means for your rights and obligations.